Personal Finance and Economics Review

Front

Economics is the study of

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how society decides what, how, and for whom to produce

Front

How are economic questions answered in a command economy?

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by the government

Front

Money serves as a standard of value because

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we compare prices

Front

Which basic economic problem does the U.S. share with all other nations?

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Scarcity of resources

Front

Which type of business organization has the advantage of limited liability but the disadvantage of less control over business decisions?

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Corporation

Front

Which of the following is an example of entrepreneurship? A person who invests in computer stocks, A person who starts a new online business, A person who takes a job with a high-tech firm, A person who buys land and builds herself a new house

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A person who starts a new online business

Front

Which of the following is true about a rational economic decision? Marginal costs exceed marginal benefits, Marginal benefits exceed marginal costs, Opportunity costs are less than marginal benefits, Opportunity costs are balanced by total benefits

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Marginal benefits exceed marginal costs

Front

What is the MOST important function of government patents in a market economy?

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To allow entrepreneurs to earn profits

Front

Payment for the use of capital are called

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interest

Front

Which kind of economy do MOST nations in the world have today?

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Mixed